New governance system

A transparent and dynamic governance process will be further developed to help deliver the Energy Union, including the 2030 climate and energy targets, in an efficient and coherent manner.

Benefits

A joined-up approach for the period up to 2030 helps ensure regulatory certainty for investors and coordinate EU countries' efforts.

The framework helps drive progress towards a low-carbon economy and build an energy system that

ensures affordable energy for all consumers,

increases the security of the EU's energy supplies,

reduces our dependence on energy imports and

creates new opportunities for growth and jobs.

It also brings environmental and health benefits – e.g. through reduced air pollution.

Investments needed

Average annual additional investments are projected to amount to €38 billion for the EU as a whole over the period 2011-30

Fuel savings will to a large extent compensate for these

More than half of the investments are needed in the residential and tertiary sectors

Lower-income countries need to make relatively larger efforts compared to GDP – but European Council conclusions address distribution and include measures to enhance fairness and solidarity while ensuring overall efficiency.

Energy system costs

Costs do not differ substantially from the costs of renewing an ageing energy system, necessary in any case

Total cost of the energy system in 2030 is projected to to increase by an equivalent of 0.15% of the EU's GDP if targets are met cost-effectively

Overall there is a shift from operational costs (fuel) to capital costs (investments)